Power: Govt firm to generate 500MW from coal

02 March 2015, Abuja – The Federal Government has announced that it has entered into a partnership with an indigenous firm, One Nation Energy Limited, to generate 500 megawatts of electricity from coal.

Coal mine

According to the government, the partnership will ensure the addition of 500MW of electricity to the national grid as part of its quest for adequate energy mix for an efficient power sector.

The Minister of Power, Prof. Chinedu Nebo, said the project would provide stable electricity that would be devoid of the challenge of sabotage by vandals who were bent on frustrating the government’s effort at providing adequate power.

Speaking while signing a Memorandum of Understanding with One Nation Energy at the headquarters of the Power ministry in Abuja, Nebo said, “Nigeria is blessed with abundance of coal deposits, with Enugu being the hub. Its coal deposits are in three layers when compared with other parts of the country that have one layer of the resource deposited at a point, all across large stretch in eight other states.”

The Chairman/Chief Executive Officer, One Nation Energy, Dr. Uzoma Obiyo, said the coal-fired plant was being constructed in Enugu State as a result of the abundance of coal deposits there.

He said Nigerian coal deposits were very clean and that the processing of the mineral resource for energy delivery would not be cumbersome.

Obiyo noted that the South-East had enough coal deposits to deliver about 5,000MW electricity, adding that the zone was a veritable corridor of power supply to the other parts of the country.

The chairman, who signed on behalf of his firm, expressed the company’s commitment to the realisation of the project and called on the government to help fast-track the procurement of necessary permits, licences and approvals.

Obiyo said, “This, no doubt, will help remove perceived and unknown bottlenecks, thus ensuring a quicker delivery of the project.

“Power generation from coal will further ensure industrial revolution. This is because the by-products from coal mining and processing will lead to economic growth. Coal-to-power development has the capacity of making Nigeria to emerge as an industrial hub.

“Therefore, coal should be a critical source in our drive to generate adequate power. Because unlike gas, which has been our main source, the Federal Government and the private sector will not have to expend scarce resources on pipeline protection and repairs. Also, we will not be at the mercy of the oil companies for the supply of gas.”